Created attachment 1313963 [details]
All logs in old layer (sosreport, /tmp/imgbased.log, /var/log)

Description of problem:
Logging in new layer failed as root get "/bin/bash: Permission denied" when upgrade from rhvh-4.x(el7.3) to rhvh-4.1-0.20170815.0.

Booting the kernel with selinux=0 solved this problem.

Note: No such issue when upgrade from rhvh-4.1-0.20170808.0(el7.4) to rhvh-4.1-0.20170815.0.


Version-Release number of selected component (if applicable):
From: rhvh-4.0-0.20170307.0
To:   rhvh-4.1-0.20170815.0
      imgbased-0.9.43-0.1.el7ev.noarch

# imgbase layout
rhvh-4.0-0.20170307.0
 +- rhvh-4.0-0.20170307.0+1
rhvh-4.1-0.20170815.0
 +- rhvh-4.1-0.20170815.0+1


How reproducible:
100%


Steps to reproduce:
1. Clean install rhvh-4.0-0.20170307.0
2. Set local repo and upgrade to rhvh-4.1-0.20170815.0:
   #yum update
3. Reboot and log in new layer rhvh-4.1-0.20170815.0 with root in direct console, and ssh rhvh-4.1 with root
4. Reboot and choose new layer rhvh-4.1-0.20170815.0 in boot entry, add "selinux=0" to kernel command, log in rhvh-4.1 with root in direct console, and ssh rhvh-4.1 with root


Actual results:
1. After step 3, log in rhvh-4.1 failed with root both in direct console and ssh.
$ ssh root.10.16
Warning: Permanently added '10.66.10.16' (ECDSA) to the list of known hosts.
root.10.16's password:
Last login: Wed Aug 16 05:40:16 2017
/bin/bash: Permission denied
Connection to 10.66.10.16 closed.

2. After step 4, log in rhvh-4.1 successful with root both in direct console and ssh.


Expected results:
1. After step 3, should log in rhvh-4.1 successful with root both in direct console and ssh.


Additional info:  
1. Also encountered this issue when upgrade from rhvh-4.1-0.20170616.0(el7.3) to rhvh-4.1-0.20170815.0.
But no such issue when upgrade from rhvh-4.1-0.20170808.0(el7.4) to rhvh-4.1-0.20170815.0.
2. No such issue in rhvh-4.1-0.20170808.0, so this is regression issue.